Skip to main content

tv   Fast Money Halftime Report  CNBC  March 13, 2012 12:00pm-1:00pm EDT

12:00 pm
it should be the other way around. we should have had the strategy of a capitalist country prbrod e procuring rare earth elements for the next generation of manufacturing. china beat us fair and square. >> thanks, rick. that does it for us. "fast money halftime report" is coming up next. >> four hours to go before the close and here's where we stand. take a look at the major averages, we are basically at the highs of the day here, multiyear fresh highs. the vix is way down today. no fear on the street today. 107 for the dow. almost 12 for the s&p and the nasdaq is up nearly 1% as well. gold and oil, take alook across the commodities today. gold down fractionally. let's call it $1700 an ounce. crude oil up 107 or thereabouts. a gain today. right to our fast five stories. the top ones we're following. the ceo of lsi joins us to talk about the bull run in tech for a
12:01 pm
full half hour. analysts day tomorrow. you'll hear what we're he's going to tell them tomorrow. congress considers sending nearly $5 billion to the industry. the price is right apple target peter missic joins us with his fresh 699 target on the largest company in the world. tliage for rite aid will a white knight save the drugstore chain. and fighting the fed, your final trade ahead of the fed announcement. 2:15 eastern time. welcome to the "fast money halftime report." let's start doing it and get straight to the rally. the highest level for the s&p since june '08. retailers and financials leading the way higher. steven weiss, technologies doing pretty good? >> good retail sales coming out. some people saw gasoline prices very high. i'm sure mr. liesman will bear me out that it was pretty broad-based. autos were strong again. but just across the retail sector it was strong.
12:02 pm
so that gave people confidence and you have yields on european sovereign debt that continue to ratchet lower despite greece. so it's all good. >> you're doing buying in the market today. simon baker, where do you come down? >> looks good. great rally from last week. where we were expecting it. good news out of germany. great retail numbers. we're long. >> let's get right to our trade. i want to talk about apple hitting this, another fresh high today. after jeffries raised the estimates. peter missic says new ipad 3 concerns are way overblown and he joins us to break it all down. do we have peter's audio? now i hear you. $699, why not $700. what's up with that? it's a joke, right? >> we call it a walmart special. >> you just didn't want to go there? >> no.
12:03 pm
just made it a little spooky. >> what's the deal? why the raise of 100 bucks? >> listen, we've got a great product cycle. we have iphones selling better than expected. bill plans being raised. we think the street numbers are too low. we think the stocks are going to go higher as a result. >> it's all related basically to the new ipad. you expect demand to be off the charts. certainly seems to be at this point. how about apple tv. they make this announcement about this new refreshed apple tv. you're talking about a real apple tv. >> correct. flat panel television, branded by apple, manufactured and aaccepted by honh achlt ai. when we were in asia we picked up that components for a apple branded television are starting to wrap and we still expect the q-4 launch. >> what about your estimates for
12:04 pm
earnings? ? where do you see that coming down? >> we're about 10% higher than the street. this fiscal year we're going to do somewhere around $47 and next year we expect just over $50 or just around $50. and frankly, our numbers for next year we don't include itv so if it does come out in q-4 those numbers will go higher. >> do you have any idea when a dividend is coming? >> they're going to end this year with about $140 billion in cash. that's a ridiculous amount of money. it starts to become a bit of risk. they're going to have to distribute it. >> weiss? >> peter here's the question, intel's announcement today, as they're going to go in to the tv business, with a set top box. do you see that as trying to get in the way of apple or just another competitor coming into the system? >> no. it's not just another competitor. we absolutely think that intel realizes that what we're getting into is a multidevice model-t
12:05 pm
platform world. you have a box on your tv, move it to your smartphone, and your tablet and your pc. you're not enabling that you're going to get knocked out of the market. intel knows pcs and services is all they got. >> dr. j. i know you like apple shares. >> it's been a fantastic stock. i continue to see just huge knowledgeny flowing into the out of the money calls, peter. it seems day after day, the out-of-the money calls become the in the money calls. so today, they've chased them up to the 560, sure enough apple traded up to 560 dollars. as far as this iphone 5 and when we get talk of that as well as the diffident, those are two of the things that hit before the tv. which one of those two, the dividend or afterle 5, the iphone 5 do you think is a digger deal? >> the iphone 5 is a much bigger deal from an earnings perspective. redesigned phone, the biggest
12:06 pm
upgrade cycle the smart phone market's ever seen, lte so it's a big deal. from a stock perspective, who can own it, i think the income investors are looking at this, and if the dividend is initiated, any kind of dividend, they're going to be buyers. >> peter, how will they space out the launches between the iphone 5 and the itv, they're not going to do both at the same time, right? >> no, they're not going to do it at the same time. interestingly enough they're probably going to be available in the market at the same time. in june we would expect you get the announcement of itv around three months in advance. and then you get refresh of the iphone 5. look at september, and then october, the two big product launches. the announcements are going to be far apart. >> josh brown, get you involved as well. >> i guess i have two questions. peter do you think that a lot of what's going to happen with the apple tv had steve jobs fingerprints on it? i know a lot of investors are wondering is that going to be?
12:07 pm
and then can you give us an idea of how big that market could be for apple? how much potential is there? >> we absolutely think steve agonized over this, developed the user interface, really got it all sorted out before he passed. from our perspective, this product, and indeed products for the next three years, he's really put his stamp on. in terms of other drivers of this and what kind of earnings we can expect, just the itv alone, for every 5 million of itvs, it's a dollar of earnings. the total market is around 300 million tvs a year. the price point they're going to be targeting is probably 100 million units a year ultimately. we think they could have anywhere between 25% and 50% market share. plus the halo effect. if you're going to get an itv you're going to get an ipad. >> good to have you on the show as always. >> my pleasure. >> thanks for coming on to talk about this call. do you buy here? >> you do buy.
12:08 pm
it is very cheap. you can't look at what the stock price has done, you have to look at the valuation in every moment in time. still compellingly cheap and what we've heard is that two big major, very major product announcements coming out this year. you're going to keep wanting to buy it. >> two major product announcements this year, as you say, yes word of that is great but there's also tremendous risk. when you're having two major products come in the same calendar year the chances of a misstep on one of them as unlikely as it may sound goes up, does it not? >> yes, and no. yes it does, if you think okay, at some point -- i'm just not there, i think their brilliant execution, even what they did with the ipad three i'll call it, and when they said okay it's not going to come into your house on the first day, that's pure marketing. that's saying okay, it's all consume all the supply. that's not true. so they're brilliant marketers. >> let's talk about the fed now. what's the fed going to say
12:09 pm
today? and is a lack of further quantitative easing bad for stocks. let's bring in senior economics editor steve liesman. there's the chairman right there. take a look at the video. >> you got to love it too fast. >> there we go. >> a shot of the silence plate. it says qe-3 on it. the question is what are we going to hear today from the fed chairman? >> can we give a shout-out to your crazy producer who creates this stuff? >> the team was great on that. >> a shout-out or a shoutdown, i don't know. >> shout-out. >> assuming they upgrade the economy do today, does that make qe-3, just play with me before you say it -- >> right. >> if they upgrade the economy. that makes qe-3 less likely, stock traders don't want to hear that, do they? >> i don't know. i think we're starting to get used to a world where maybe qe-3 is not going to happen. the prescription should match the description, okay? if i tell you the economy is lousy as a central banker i have
12:10 pm
to tell you i have a prescription for the lousy economy that's equal to it so i'm sort of neutral in the description of the description. if you tell traders you're going to get a growth environment of 2.5% to 3%, economy is going to create 200,000 jobs, and the unemployment rate may stay the same because they're bringing people back into the workforce and you tell me for that trade, i take qe-3 off the table, i can't speak for your boys and girls out there, but i think they take that trade. i would take that trade. in fact i take that trade better than the other side, which is anemic growth, a rising unemployment rate and fed doing qe-3. >> i agree completely. i'd rather see a stronger economy. i don't believe there will be a qe-3. i'm not agree being with him just because he's sitting so close to me and can duke me out. i think that's the trade to be in now because also you've got europe slowing and china slowing. now the u.s. is not far but our economy is far bigger than theirs. it would be great, so i don't see how -- >> i'm not sure may scenario is
12:11 pm
that far from potential reality here. >> i think it is. >> i about the idea. we could be doing 200,000 a month. the retail sales number show consumers hanging in there. wouldn't get too crazy about it. the fed wants to be on hold here. it does not want to tighten. it's got a predisposition to being low until late 2014. and unemployment rate could remain pretty constant because you could get this inflow back into the workforce. >> let me ask you -- >> sorry. >> let me get simon baker involved quickly. simon, what are your expectations? let's play the game of reality of what really is going to happen today and how you're going to react to it? >> the nice thing is they have to do absolutely nothing today, right? why would they? i mean i think the real news is going to come out in june, but just as steve's point, you know on the flip side of that the first data coming out of the export and the export es first couple of months suggest gdp is looking more like 2%. there's no way to take qe-3 off
12:12 pm
the table today. >> it doesn't come off the table. but i think they're worried about these fairly insane wall street economists. >> yeah. >> you know, every time they have a bump-up -- >> of who you are a member. >> every time there's a burp-up in the trade deficit. they bring down growth numbers, then a couple days later we get the inventories numbers and they bump them back up. guess what? when you bring stuff into the country they have to go someplace. that's what happened today, we marked down growth on friday because of the higher than expected trade deficit. they're marking it back up today as if they've never done this before. the stuff that came into the country went some place. now we're back, 2, 2.5%. rdq is still sticking with 2.5% to 3% economy. >> there's only really two groups of people that have any interest in seeing a premature qe-3 happen here. gold investors and silver investors. no one else thinks that we need to now throw more money at the stock market, at the bond market et cetera. it didn't work the first time.
12:13 pm
it dont didn't really work that well in the second time. it was just commodity inflation. >> no but there is the one issue which is on the table. and i think scott was getting this at the top. which is what happens in june. this is the meeting before the meeting. it has to do a little bit with the idiosyncrasies of the timing. a meeting in march, a meeting in april and no meeting until june. that means that the fed will not wait to tell us what's going to happen to operation twist. so the question is on the table, do they continue operation twist even while they have a dwindling supply of short-term securities to sell to the market? or do they do something else? a qe-3 or something? or do they let the economy stand on its own? >> what's he going to say today on inflation? >> i think he's going to be pretty sng win about inflation. both the unemployment side of things and employment side is running away from where employment's been. inflation has been worse. they have said we expect it to
12:14 pm
be subdued. not with oil at 180. >> turning in for the fed decision and market reaction to it today on street signs starting at 2:00 p.m. eastern. let's hit our breakout of the day. tiffany crossing above it's 200 day moving average and up another percent today ahead of its earnings report next week. simon you say that's the way to play retail, right, stay towards the high end? >> high end. the key here is sort of pricing power. a couple of companies, urban outfitters for example, terrible numbers the other day. down 6% or so. gnc is another number. another company that does have pricing power, up 8% today. those are the type of companies, tiffany's, michael kors, they don't have to start selling things off to control the long term. lulu, i know it's a favorite of yours since you got those spon decks shorts you run around in on the weekend. you're not going to see them on sale. you never see diamonds on sale.
12:15 pm
>> the thing about the retail space, at least today, do we have this board of the stocks, the retailers that are at all-time highs? it's across the spectrum. it can be from as low as sort of on the lower end as the dollar tree. you can go mid range, limited brands, whole foods or apple we can put in that space certainly. you can look at nike, as well. >> yeah, and nike's going to report thursday after the close. i think that's still a great story. for me you have to go with the operators, as well as the high-end assignments. macy's not particularly high end as bloomingdale's. mostly it's middle america. still take sears, i can't believe the rally it has. i am short penny basically on valuation, of course -- i like the high end. >> next up, nat gas falls to a decade low. are we anywhere near a bottom?
12:16 pm
you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. are you still sleeping? just wanted to check and make sure that we were on schedule.
12:17 pm
the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.
12:18 pm
welcome back to the "fast money halftime report" report. our traders are always fast but they're not always right. time for some fast fire.
12:19 pm
check out what steve weiss had to say about halconresources about a month ago. >> i think this is a great way for the individual investor to invest in private equity, so to speak. here's a guy who's done it three times before, has told you he's going to do it again, he's good to his word. i would buy hk. >> of course the he is floyd wilson, the ceo came on the program, we talked about the stock that day. i think that's the day you recommended it. the stock's annihilated since then. made it stronger. it's down double digit percentage points. gotten killed. >> it has. and part of that is because "fast money," everybody saw the wisdom that i saw went out and bought it. since then it's come down. the two key words there were private equity. private equity are a much larger period of time. floyd just took over the company. the deal just closed where he put the $550 million in last month. give him some time. in my view this stock is at least a double, more likely a triple. more a four bagger. because that's what he does. he's going to acquire assets
12:20 pm
then he will sell the company. he'll do it again. great opportunity to buy. i bought more yesterday as a matter of fact. or last week, actually. >> so y back and you doubled down, so to speak. >> not quite. i had a pretty big position anyway. i really don't like looking at it because my play is two, three, years. it's not now. but from what was it, 60 billion to -- 60 million to 13 billion, i don't know 2 we see that kind of multiple here. but you will make a lot of money. >> who's to say the track record, obviously has a great track record. three for threes in the deal's he's done. >> your downside is slightly from here. i like seeing where people put their money. 550 million between him and two partners into the company. that's significant. now they have instructed, which some people are criticizing but he got those because he put the money in. i'm fine with that.
12:21 pm
he never sold stock. he was a believer. he's got the ticker, hk, just buy it. >> you're a believer as well. going to dan now? nat gas hit a ten year low ellier today. analysts say the mild winter is to blame. so what's the trade? bring in dan dicker, president of merck block and a "fast money" contributor. >> how are you? >> i'm good, thanks. i don't know, man, watching nat gas getting kind of ridiculous. >> rick santelli did something great standing on the floor of the exchange. maybe it's time for me to do something like that. nat gas is at a 45-1 differential. when the historical to crude is more like 6-10. we've got a nat gas bill that's sitting in congress. this is the third iteration of this nat gas bill. i understand that it's unpalatable in washington. people should start calling their congressmen to get this thing attached to the highway funding bill today and get this sucker passed. i'm sorry? >> for trading perspective,
12:22 pm
let's make some money here, right? what are the implications? i mean what's the trade to do in an environment of ridiculously low nat gas prices? are we looking at smaller companies potentially going to be taken out? who are some names to look at? >> this is an inevitable, inevitable move to nat gas in this country. whether you have washington on board or you don't have washington on board. you need to look at some of the stocks, this is not going to be a "fast money" trade but these are the stocks that are going to triple over the next three years when natural gas gets some excitement behind it. which it absolutely must do. we are flaring, we are burning off natural gas in the balkans in order to get to oil. we have an equivalency of nat gas if you filter cars with it for $1.60 a gallon right now, honda makes a perfectly good civic you can fill it with. you're paying closer -- you're going to get $5 a gallon going into the summer. the stocks that you want, if washington can come through at some point, and approve this bill, are all those dedicated natural gas stocks that
12:23 pm
absolutely got hammered over the last three years, i'm talking sandrich you pick your names, i'm talking devon, ultrapetroleum, i'm talking cabot, these are the names tat are not going to be fast money names but these are the best value in the sector and the nat gas move is absolutely inevitable. this is ridiculous, 223 is ridiculous. >> scott, there's an etf that owns all of them. if you don't want to take the single stock risk because they can be very risky, you can look at fcg something that we've done before for clients. it owns all of the mid cap natural gas only producers. it's a nice basket. and that would work if dan's right. >> we're not faulting you for the lack of a "fast money" trade. sometimes smart money is better. >> call your congressman. we're all getting hammered. the economy is in trouble. this will help jobs, help everybody's wallet. it will help the economy. it's an absolute no brainer. tell the politicians to get something right. >> now you sound like santelli.
12:24 pm
you're channeling your inner rick santelli. >> talk to you soon. >> you bet. >> you like any of these other names. >> i like chesapeake. >> i think one of the best ceos in natural gas industry. there's value there. the partnership with kkr, i think that's a very good stock. but i got to ask myself, why or i should have asked dan because he's more knowledgeable than me on this. but why haven't there been more shut-ins? is it because playing machiavelli here that they're trying to keep nat gas low to spur washington to do something? and then prices will move up? and if that's the case you definitely want to own these stocks. >> let's hit a tweet we just got. @ryanmundy2 asks, shouldn't every move down in nat gas prices be a positive up for a name like clne? najarian? >> absolutely it is. along with the fact that gasoline and diesel are lifting as much as they are. so absolutely clne, earnings
12:25 pm
last night not terrible stocks a little soft today. but still very close to 52-week highs. you look at that versus those natural gas stocks, this one's clearly outperforming, because people really do see the potential, and this will be one of the winners. there will be many. but this will be one of the winners, scott, going forward that basically help turn the fleets into natural gas fleets. >> j.b.? >> i would just be careful with the clne because i know they have to raise money and they've been very opportunistic before, which is smart for long-term investment. but, once you get the stock up at these levels, you never know when they're going to drop a secondary, as the case may be. i'm sticking with the fcg idea, all high quality producers and some of the lower quality. devil some beta in those names. that way you don't have to bet on the one nat gas company that might have more risk than the others. you could just own the basket. if dan is right that's going to be a hot etf in my opinion. >> simon you're overweight energy? >> overweight energy but not in the natural gas. i mean we're trying to trade these names.
12:26 pm
i still think there's a way to go. i like the suppliers of the energy companies. companies like chicago bridge and iron. $9 billion, in back orders. $325 million in free cash flow. that's where i'm looking to make money an a two bagger on the upside not a two bagger on the downside. >> next how the european close may impact afternoon trading here in the united states. plus the trade on a spirits maker that's getting a boost on some takeover chatter. looking for a better place to put your cash? here's one you may not have thought of: fidelity. now you don't have to go to a bank to get the things you want from a bank. like no-fee atms -- all over the world. free checkwriting and mobile deposits. now, depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today
12:27 pm
and discover another reason serious investors are choosing fidelity. hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. forty years ago, he wasn't looking for financial advice. back then, he had something more important to do. he wasn't focused on his future but fortunately, somebody else was. at usaa we provide retirement planning for our military, veterans and their families. now more than ever, it's important to get financial advice from people who share your military values. call now for our free guide and tips on planning
12:28 pm
for your retirement this tax season. my dad and grandfather spent their whole careers here. [ charlie ] we're the heartbeat of this place, the people on the line. we take pride in what we do. when that refrigerator ships out the door, it's us that work out here. [ michael ] we're on the forefront of revitalizing manufacturing. we're proving that it can be done here, and it can be done well. [ ilona ] i came to ge after the plant i was working at closed after 33 years. ge's giving me the chance to start back over. [ cindy ] there's construction workers everywhere. so what does that mean? it means work. it means work for more people. [ brian ] there's a bright future here, and there's a chance to get on the ground floor of something big, something that will bring us back. not only this company, but this country. ♪
12:29 pm
all right, welcome back to the "fast money halftime report." just seconds away from the european close. take a look here what our markets are doing. not close to closing but at session highs. dow industrials at 111 point gain today. we're holding fresh multiyear highs. for the dow, s&p. nasdaq back above 3,000 as well today on a day where you have retail sales, a fed meeting, and the european close happens early
12:30 pm
because of the time change that we had in the united states. take a look at u.s. steel as well before we send it over to mandy. it's the best performing stock in the s&p 500. so letter x is performing quite well as are the european markets. >> they certainly are. look at these scoreboards. the cac quarante up by 1.1%. in fact, european shares closing around their highest, in over eight minutes. just like here in the united states, it was largely spurred by encouraging data out of germany. in fact it was encouraging investor sentiment out of germany. yesterday i mentioned hungary, as one of the latest flashpoints for concern. moving away from greece, that is. eu finance ministers agreed today to suspend $495 million euros in in a two hungary from 2013 for failing to keep its budget in check. this is a punishment. it has a reprieve. it has a few months to get its act in gear and the budapest stock exchange up by 1.2%. not overly concerned about
12:31 pm
thinking. stocks, one really sticks out here and it is t od's. this is an italian luxury shoemaker. surged to the highest level since mid-august of last year. strong sales outside of italy, boosting the put-year profits and margins before forecasters. >> coming up on the halftime show an exclusive interview just after the break. the ceo of lsi corps is with us for the rest of the hour. to talk everything including the stock's 40% rise. introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz. ♪
12:32 pm
[ male announcer ] offering four distinct driving modes and lexus' dynamic handling, the next generation of lexus will not be contained. the all-new 2013 lexus gs. there's no going back. ♪
12:33 pm
12:34 pm
welcome back to the "halftime report." our top three trades of the day. jim beam is higher on takeover talk. according to reports deage yo may be interested buyers. >> i'd be surprised if this happened. the reason being that they could have bought the company before it was spun off. never say never. but generally doesn't happen. unless the price of the company could have got weren't that good. it's up there, though. >> second the vix sinks touching its lowest level in a long time. dr. j.? >> about the narrowing of the range in the market in general, scott. and also right now the contango
12:35 pm
where the futures are relative to where the vix is right now. near the record level. ten dollars between where the spot vix is right now and the june contract. that does say that we're looking at a likelihood that the vix will be moving up in the near term. perhaps not days but not much more than weeks. >> pretty attractive to buy protection at 14 or below. >> indeed. when we broke through 14 briefly today out of 1399 for the spot vix that was the lowest level in five years. >> that was in like ten years. molycorp getting a bid prompting a rare earth rumble. >> i think that's the story with the rare earths. it's a thietly held commodity geographically speaking. there's really not a lot outside of china's control. so i think a lot of the way this stocks trades is predicated on supply, rather than demand.
12:36 pm
you have to exexpect volatility to be the norm. i don't really like this group. but if you have to be in it, moly is probably your best bet. >> as we said earlier we have a very special guest on with us for the rest of the hour. here for a cnbc exclusive is abhi talwalkar, president and ceo of lsi corp. obviously hosting lsi's analyst meeting in new york tomorrow. he's here with us. today. it's good to you have here. you can spare your analysts the news tomorrow. >> i might get into trouble doing that. >> how's business? >> business is good. business is good. i think the improving u.s. economy certainly is driving tech consumption, and we're seeing some of the other regions in the globe also continue to spend on technology. >> semiconductorer industry association said semiconductor sales for january down 2.75%. seasonal or something else? >> yeah, there's some seasonality. i mean in the case of lsi, we're
12:37 pm
emerging out of a three, four-year reposition of the company. we're seeing fantastic growth. and will continue to see solid growth this year, as well. >> where's the growth coming in? >> well, as a company we focused ourselves on solving this data deluge problem. we're creating so much data around the globe as well as traffic across networks. growing it 30% to 50% per year. doubling every two, three years. that's a big problem. i.t. budgets can't keep up with that spend. we're driving technology to help close some of that gap. around mobile networks as well as in terms of data storage and access. >> give us an idea of where the tech spending landscape sits right now, and who's spending it. >> well, i think -- well, corporations and our customers are ibm, dell, hp, oracle, erickson, nokia, siemens, people who service data centers, clouds of all types and sizes as well as noble networks given the tremendous explosion in smart
12:38 pm
clients. they're servicing small to large businesses, hyperdata centers that are building out all the social platforms for example. as well as carriers that have to keep up with this pace of smartphone growth. >> if you go back to just the prior question, isn't that the difference in the company now? the company historically, before that, was regarded as more of a commodity company and now you've got this area that you're focusing on. >> yeah. >> is that the primary difference that we're looking at? >> it's a significant part of the difference. the company's very different today. we've gone through 11 acquisitions, three divestitures, positioned ourselves in the crosshair of this data deluge problem. we've built up a pretty significant pipeline of design and now we're emerging out of this investment cycle. we grew 9% last year, 16% in the second half over the prior year and we're expecting good growth this year as well. >> stock price had a hell of a ride this year. >> we're doing well. i always told my employees, wall street's going to be the last
12:39 pm
recognize a turnaround. it has to be in the numbers. now it's in the numbers. we're looking for it going from here. >> have some other traders who want to get involved in the conversation. simon baker? >> congratulations on the performance of your stock. those are good meetings to have some. but a question was asked earlier, you have exposure to both the enterprise, pc and consumers. where do you see the most demand for your drives? >> i think you're talking about specifically the components that we put in the disc drivers. the demand there, first of all i think people still are watching the overall thailand flood and its impact on the heart of the disc drive industry and the recovery. it's going well. we're still underserving natural demand as an overall industry. but in terms of our demand we're seeing a snap back in the drive industry. we're also see tremendous uptick in terms of flash. we're participating in flash storage or solid state storage,
12:40 pm
which lsi is a leader in and that's also driving quite a bit of our growth. but we're seeing growth across all our product lines over the course of this year. >> we want to talk not only about your business, but some other things on the tech lanz scape. we're going to talk to you about intel in just a moment and that big announcement that they had last evening. on that note, it is the world's biggest chipmaker. considering creating an online pay television service according to several reports. shares are seeing a modest jump. is this the right move for the company? let's bring in an analyst at stern. welcome to the program. this may have caught some folks by surprise last night just given it seems such a -- such a tremendous shift, a hard left turn, if you will, from the pc space for intel. are you surprised as some others? >> well to start off i don't think we're confirmed with intel yet. but intel has trying to get away from pcs for awhile. it looks like cable might be the
12:41 pm
next stop. but looks like a tougher space. cable has a lot more competition. and probably lower than the pc segment. >> what does it tell you about paul d chlt eline and his desires to diversify away from the pc space? even rumors alone interest are interesting to contemplate? >> i think any big picture of the pc market starting to slow down a little bit. when you look at the growth in the prior year. so that's been one of the things that the ipad coming out, and ju just -- so the need to get out of the pc market. for two years now, they need to get in to bigger markets like hand sets and smart phones just seeing more growth, or on to the cable site where they can enter the living room. >> i have abhi talwalkar the president and ceo of lsi here sitting on set with us. what was your reaction when you heard this news, fellow chip company making what appears to
12:42 pm
be a fairly dramatic leap? >> i worked for intel for a number of years. i can speak with a little bit of insight at least in terms of the company and paul. obviously speculation but i would agree in terms of intel needing to diversify to drive growth. the street pay pas for growth. you've got to grow 10% to 20% per year. you've got to look for ways to grow. if anyone can pull it off it's probably intel given its scale. a lot of competition in service in content into the home. >> how do you break into a new space if you're a big company like intel in a landscape that's already crowded with people who want to get in to it? >> yeah, absolutely. >> maybe who have more expertise -- >> very difficult. as a semiconductor company. you know, one reason for them possibly looking at it is, for intel the chances of competing against your customers is very high. this is an area that they probably will not be come petting against other customers if they're pursuing it. i can understand potentially the rational. >> why not just make a large
12:43 pm
acquisition to change the company or is this their way of getting their toe wet so if they make an acquisition in this area it's not such a shock to the market? >> it's a possibility in terms of getting into the market itself. acquisitions are also incredibly risky and can change business models very dramatically and valuations, as well. >> you've made your own acquisitions, we know a little bit about that. very jay, what about that? >> i agree with what he said. congratulations by the way. it's definitely a little bit more risky. at the same time you need a game pln how to grow the business. it's a pretty well saturated space when you look at cable and the margins are probably diluted toward intels margins. >> you don't cover lsi? >> not yet. >> i was going to put you on the spot with the man sitting right here.
12:44 pm
vijay we'll talk to you again soon. next up on the "halftime report," is a well-known drug store name ripe for a takeover? we'll have the trade on the rite adrien sans. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying...
12:45 pm
[ all ] i'm with scottrade. i love that my daughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. the two trains and a bus to the 5:00 arider.holar. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you.
12:46 pm
and we've been honored to walk with you to help you get where you want to be. ♪ because your moment is now. let nothing stand in your way. learn more at here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline will provide secure and reliable energy to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now.
12:47 pm
coming up next on "power lunch" obama care battle at the supreme court. high stakes for the health care sector. we'll score the winners and the losers. then, defensive stocks soaring after a january lag. what's behind the surge and where should you put your money to work right now? and low volume, low volatility plays from the head of investment strategy at barclays wealth. he's today's power player all next on "power lunch" now back to scott on the "halftime report." >> let's move on to our next trade. i want to show you an intraday chart of shares of microsoft because a big block trade in that stock went through about 11:00 a.m. obviously the stock took a little bit of a spike up just before we came on in the noon hour. abhi what are your thoughts on what's happening at microsoft? certainly the stock has had a bit of a are you surge ens. microsoft seems to be back in the conversation as it, too, kind of tries to evolve and move beyond just the pc space.
12:48 pm
whether it's ultrabooks or some of the other things they're doing with windows 8 mobile. >> absolutely. windows 8 certainly has a lot of promise. great technology. could be the disciple that we're all looking for. those of us that participate in some capacity in the pc market space. unlike intel, also trying to dinners fie and become relevant in the case of microsoft and handheld. smart handhelds but also in terms of search. >> do you feel as though a new dawn is upon us for microsoft? a stock that's long forgotten? a company that seemed to be a little long in the tooth, which now maybe is innovating again? >> it say possibility. again, another great company. that has to innovate. and has to participate in these new platforms, whether it's the social platforms, or whether it's mobile handheld platforms. >> want to get some of the traders involved in the texas conversation. dr. j.? >> well, when you look at this one, scott, this has definitely been a stealth trade not because people haven't paid attention to microsoft, but because they're looking at the wrong thing about microsoft. they look at the xbox as a
12:49 pm
gaming console, which it was clearly built to be. but now that's how people basically get hulu, netflix, voodoo, any of these content providers over the internet are available on that xbox. you look at how many of them there are, the new xbox 360, 57 million out there sold installed already. that's an amazing number when you compare it to like comcast, you know, the parent company here, which has like 22.5 million people out there. this is twice as big as that already, scott. and i think that's what ottelini is looking at when he says that apple and microsoft, surprise surprise, those two are back in the game, are going to own another bit of the consumer, and that's why he has to get into that space. >> i'm not buying the new dawn for microsoft story. i think the stocks's been dragged up. >> that means you've been missing it. that means you've been missing it. >> i'm not long but what's the difference? >> big difference. this is moving faster than the
12:50 pm
qs, josh. >> i think so. but it's getting that halo effect because tech is hot. i think that there's a lot of that going on. and i think a lot of it a lot of it also has to do with the new windows cycle, which should be pretty decent. but i don't know that they have anything new that's screeching hot that's going to take the country by storm. i just think it's a good time in the cycle. and it's a tech name and people want to own tech. >> does dr. "j's" thesis that he was laying out -- is the hand in some respects being forced by the actions of others? >> to some extent. intel has to grow. they're a $60 billion company, incredibly high share in all the compete segments. so where do you grow? it may be largely speculation, but you have to grow more into data centers, which they're investing in and doing really well. but also into the home. how do you go into the adjacency of participating in the content that's being delivered in the home? >> you must have some pretty
12:51 pm
interesting thoughts just given the whole data delivery issue, social media? >> we love it. at least social platform, from that standpoint, started out as social. it's becoming a completely virtual world where there's business, there's advertising, there's entertainment. and it creates tremendous amounts of data. >> how many percentage points of growth does that add to your company? >> very difficult to put a pinpoint on that. but it's driving a lot of our growth. >> we have a realtime trade for you after the break when we come back.
12:52 pm
12:53 pm
12:54 pm
jim iuorio joins us. what's going on? what's your trade? >> xlv, the health care etf, over the last three trading days, trying to break out of a pretty tight consolidation. today it seems to have done it a little bit of authority. and i bought it about 36.60, looked like a buy to me. it fits in with my risk-light trading thesis right now. the stock market has made new highs. are we ready to go out to the foreign spectrum and buy banks or go in a little closer and buy health care? to me, health care seems more what people want. >> i like health care. but i like defensive stocks also. to me, tech is the place to be as we've been hearing today. that's going to continue to be the market leader. >> jimmy, thanks. talk to you soon. >> sure. >> let's get your "money in
12:55 pm
motion" trade from rebecca patterson from jpmorgan asset management. what are you watching today? >> i'm keeping an eye on the mexican peso. we have a fed meeting today. u.s. ten-year yields rising, the dollar rising, stocks rising. everybody's happy into the fed. i think if we can see the dollar continue to rise, you want to buy the mexican peso and sell the dollar on that move. so i'm looking to buy the mexican peso around 12.8 on a little bit of a pullback and target to move down to 12.4. technical resistance around 12.6. but if the u.s. does well, so does mexico and we get a pick-up. >> do we go below 1.30 euro/dollar? >> the fed wants to see the economy get more moipt. i think the bottom is going to be in place soon. >> rebecca, thanks. coming up, final trades from
12:56 pm
the "halftime" team. ttd# 1-800-345-2550 ttd# 1-800-345-2550 let's talk about the typical financial consultation ttd# 1-800-345-2550 when companies try to sell you something off their menu ttd# 1-800-345-2550 instead of trying to understand what you really need. ttd# 1-800-345-2550 ttd# 1-800-345-2550 at charles schwab, we provide ttd# 1-800-345-2550 a full range of financial products, ttd# 1-800-345-2550 even if they're not ours. ttd# 1-800-345-2550 and we listen before making our recommendations, ttd# 1-800-345-2550 so we can offer practical ideas that make sense for you. ttd# 1-800-345-2550 ttd# 1-800-345-2550 so talk to chuck, and see how we can help you, not sell you.
12:57 pm
ttd# 1-800-345-2550 [ kareem ] i was fascinated by balsa wood airplanes since i was a kid. [ mike ] i always wondered how did an airplane get in the air. at ge aviation, we build jet engines. we lift people up off the ground to 35 thousand feet. these engines are built by hand with very precise assembly techniques. [ mike ] it's gonna fly people around the world. safely and better than it's ever done before. it would be a real treat to hear this monster fire up. [ jaronda ] i think a lot of people, when they look at a jet engine, they see a big hunk of metal. but when i look at it, i see seth, mark, tom, and people like that who work on engines every day. [ tom ] i would love to see this thing fly. [ kareem ] it's a dream, honestly. there it is. oh, wow. that's so cool! yeah, that was awesome! [ cheering ] [ tom ] i wanna see that again.
12:58 pm
♪ [ woman ] my boyfriend and i were going on vacation, so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪ [ male announcer ] the citi thank you card.
12:59 pm
earn points you can use for travel on any airline, with no blackout dates. the ceo of lsi has spent the last 30 minutes with us. time to get a final company. we didn't talk about facebook. where does facebook factor in to your business? >> exciting. the social platforms are no longer just social platforms. they're complete virtual worlds, business, entertainment, advertising, collaboration. that just drives tremendous amounts of data. that's good for us because we help solve that problem. >> great having you. thanks for spending time with us. >> thank you. >> see you soon. simon, kick us off with your final trade? >> gnc. over 50% of americans taking vitamins. the number getting higher. increased expectation this is morning. buy it. >> $80, it's a psychological level and a breakout l,


info Stream Only

Uploaded by TV Archive on